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UnitedHealth stock climbs as new CEO vows change

ReutersJun 2, 2025 4:37 PM

UnitedHealth Group UNH.N stock climbing 0.6% on Mon after new CEO Steve Hemsley vowed to regain shareholder trust following recent earnings shortfall

Hemsley replaced Andrew Witty in May after co's first earnings miss since 2008; suspended earnings outlook due to higher-than-expected costs in Medicare Advantage unit

Co plans to factor higher care costs into private insurance and next year's Medicare Advantage plans; reviewing practices across businesses

UNH stock down about 40% YTD, underperforming S&P 500 .SPX, which is flat

Stock recently traded at 12x expected earnings, suggesting undervaluation vs avg forward PE of 19 over past five years

UNH stock approx 52% below 52-week intraday high of $630.45 reached on Nov. 11, 2024

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